Main Investment Projects

The Eastern Siberia – Pacific Ocean Pipeline System (ESPO PS)

Project Goal

Ensuring oil transportation from oilfields in Eastern Siberia to Russian refineries and for export to markets of Asia and the Pacific via the port of Kozmino as well as to China

Basis for Implementation

Directive No. 1737-r of the Russian Government dated 31 December 2004 in the version of Russian Government Directives No. 1246-r dated 5 September 2006 and No. 231-r dated 27 February 2008; Instruction of the President of the Russian Federation No. Pr-1465 dated 10 August 2007; Directive of the Government of the Russian Federation No. 455-r dated 3 April 2009; the list of instructions from the Chairman of the Government of the Russian Federation following the meeting on Development Prospects for Oil and Petroleum Products Pipeline Transportation that took place on 18 February 2014.

Construction of the ESPO-I

Construction of the Eastern Siberia – Pacific Ocean oil trunk pipeline at the section from the Tayshet initial pumping station to the Skovorodino pumping station with the throughput capacity of up to 30 MTPA and the length of the line reaching 2,694 km, with construction of seven pumping stations. Construction of an oil port in Kozmino Bay.

Status

In 2009, the construction was completed, and the facility was commissioned.

Development of the ESPO-I

Stepwise development of the throughput capacity to 50 MTPA, with construction of five new pumping stations (Phase I), and to 58 MTPA, with construction of three new pumping stations (Phase II).

Status

Phase I was completed in 2012, Phase II was completed in 2014.

Further Development of the ESPO-I

As part of the plan to increase the throughput capacity to 80 MTPA, construction of six new PSs and revamping of the existing pumping stations is envisioned, along with construction of a 50,000 m3 tank.

Status

In 2017, three new pumping stations were commissioned, and two existing pumping stations were revamped, which boosted the oil pipeline’s throughput capacity to 73 MTPA.

In 2018, revamping of the Tayshet initial pumping station was completed, with construction of a 50,000 m3 tank, along with works on the construction of three new pumping stations with external power supply facilities.

Completion of the project, with the throughput capacity of the oil pipeline at the Tayshet IPS – Skovorodino PS section increasing to 80 MTPA, is scheduled for 2019.

Construction of the ESPO-II

Construction of the Eastern Siberia – Pacific Ocean oil trunk pipeline at the Skovorodino PS – Kozmino SSOP section with the throughput capacity of up to 30 MTPA and the length of the line reaching 2,046 km, with construction of seven pumping stations.

Status

Commissioned in 2012.

Further Development of the ESPO-II

To increase the throughput capacity to 50 MTPA, construction of four new pumping stations and revamping of the PS currently operating is anticipated along with construction of tanks having the volume of 100,000 m3.

Status

One pumping station was commissioned in 2017, which enabled to raise the oil pipeline’s throughput capacity to 45 MTPA.

In 2018, construction of three new pumping stations with external power supply facilities and revamping of the existing PSs were carried out.

Completion of the project, which will increase the throughput capacity of the oil pipeline at the Skovorodino PS – Kozmino SSOP section to 50 MTPA, is scheduled for 2019.

The ESPO PS – Komsomolsk Refinery Oil Pipeline Offshoot

Project Goal

Ensuring transportation of oil to the Komsomolsk Refinery in the amount of 8 MTPA.

Basis for Implementation

Agreement between Transneft and Rosneft.

Description

The project anticipates the construction of a pipeline offshoot from the ESPO pipeline system to the Komsomolsk Refinery with the throughput capacity of up to 8 MTPA and the length of 293 km as well as construction of three new pumping stations and tanks having the total volume of 80,000 m3.

Status

The construction of the facilities is complete; commissioning permits have been obtained.

In view of the fact that Rosneft failed to keep its commitment to connect a technologically interrelated facility to the offshoot pipeline, Transneft had no opportunity to conduct integrated testing of the systems and equipment at the facilities, or to host an acceptance board, which led to the project delivery deadline being postponed to 2019.

Development of the Trunk Pipeline System to Increase Petroleum Products Delivery to the Port of Primorsk (the Sever Project)

Project Goal

Increasing the volume of diesel fuel pumped to the port of Primorsk.

Basis for Implementation

The Energy Strategy of Russia up to 2030, approved by Directive of the Government of the Russian Federation No. 1715-r dated 13 November 2009; the General Development Plan for the Russian Oil Sector, approved by Order No. 212 of the Ministry of Energy of the Russian Federation on 6 June 2011; the Transneft Strategy up to 2020.

Stage 1

Increasing the volume of diesel fuel pumped to the port of Primorsk from 8.5 MTPA to 15 MTPA. This stage anticipates construction of four new pumping stations and revamping of the existing PSs, construction of 15 km of loopings and tanks with the total capacity of 60,000 m3 as well as conversion of the Yaroslavl — Kirishi-2 and Kirishi — Primorsk trunk pipelines from oil to diesel fuel pumping (805 km).

Status

This stage was completed in 2016.

Stage 2

Increasing the volume of diesel fuel pumped to the port of Primorsk from 15 MTPA to 25 MPTA. This stage anticipates construction of new petroleum products pipelines and revamping of the existing ones, having the length of 138 km; construction of three new pumping stations and revamping of the existing PSs, as well as conversion of the Gorky – Yaroslavl oil trunk pipeline (320 km) for petroleum products pumping.

Status

In 2018, the goal of the project delivery was achieved: works were completed, and facilities were commissioned to increase the volume of pumped diesel fuel to 15 MTPA.

Revamping the System of Trunk Pipelines to Increase the Volume of Petroleum Products Transported to the Moscow Region

Project Goal

Increasing the volume of transported light petroleum products (motor gasoline, diesel fuel, aviation kerosene) and expanding the range of motor petrol types for consumers in the Moscow region. The project will enable the supply of more than 14 million tonnes of petroleum products to the Moscow area.

Basis for Implementation

The General Development Plan for the Russian Oil Sector, approved by Order No. 212 of the Russian Ministry of Energy on 6 June 2011, the Transneft Strategy up to 2020, Agreement between Transneft and Gazprom Neft on cooperation in joint projects implementation

Description

The project anticipates construction of 78 km of pipeline and a new pumping station, revamping of the existing pumping stations, construction of tanks with the total capacity of 240,000 m3 and a railway loading rack, and conversion of oil pipelines for pumping petroleum products.

Status

In 2018, the goal of the project implementation was achieved – the works are completed and all the main facilities essential to increasing the volume of transported light petroleum products (motor petrol, diesel fuel, aviation kerosene) and expanding the range of motor petrol types for consumers in the Moscow region, are commissioned.

Execution of the Transneft Development Programme

This programme is part of the Transneft Long-Term Development ProgrammeThe Development, Technical Upgrading and Revamping Programme for Transneft Trunk Pipeline Facilities.. It includes investment projects for development of the pipeline system, its technical upgrading and revamping.

259RUB bn

the actual financing for the Transneft Development Programme of Transport Subsidiaries

In 2018, the actual financing for the Transneft Development Programme of Transport Subsidiaries reached RUB 258,617.4 million (100% of the planned figure), including:

Loaned funds: RUB 54,176.9 million

Own funds: RUB 204,440.5 million

The actual financing of the Transneft Investment Programme within the Development Programme, came to RUB 63,795.6 million in 2018 (98.2% of the planned RUB 64,964.7 million), including:

63.8RUB bn

the actual financing of the Transneft Investment Programme within the Development Programme

Loaned funds: RUB 54,176.9 million

Own funds: RUB 9,618.7 million

With the Investment Programme’s overall targets hit, execution of the financing plan for each investment project of Transneft within the Investment programme had its own specifics. on a number of projects, the actual volumes of financing exceeded the targets, which was caused, above all, by the fact that the work had been completed ahead of the contractual schedules. On other investment projects, however, the actual volumes of financing were below the targets. This was caused by redistribution of financing, the main volumes being shifted from Q4 2018 to Q1 2019 in view of scarce sources of financing.